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What Is Mobile Check Deposit?Rates Slashed Again at AARP Financial Savings Center
POSTED
ON BY Ken Tumin
AARP Financial Savings Center cut the rates today on both its High Yield Savings account and its Jumbo Secure Money Market account. The new yield is 3.50% APY for both.
The yield had been 4.05% APY for both. For those who already have accounts, the new rate may not immediately apply to you, but it probably will fairly soon. When the rates were slashed on May 24th, readers had reported being told that the old rates would apply to existing customers for probably at least 30 days. This turned out to be too optimistic. Within two weeks, the rates for existing customers were lowered to equal the new-account rates.
Here's a summary of the rate changes over the last couple of months:
I was afraid these rates would not hold. Readers found many other Waterfield/Affinity related banking centers on the web which includes the well-known UFB Direct. I reported the yields offered by all of these banking centers in this May 21st post. There were none that had yields of 4% or higher. Most had yields around 3%. So it seemed unlikely that the AARP Financial Savings Center would be any different over the long term.
Alliant Credit Union's savings account is now clearly on top with a 4% APY. This should at least hold through June.(see my Alliant review).
For more details about AARP Financial Savings Center and the the savings and money market accounts, please refer to the following past posts:
Thanks to all the readers for noting this change.
The yield had been 4.05% APY for both. For those who already have accounts, the new rate may not immediately apply to you, but it probably will fairly soon. When the rates were slashed on May 24th, readers had reported being told that the old rates would apply to existing customers for probably at least 30 days. This turned out to be too optimistic. Within two weeks, the rates for existing customers were lowered to equal the new-account rates.
Here's a summary of the rate changes over the last couple of months:
Date High Yield Jumbo Secure
Savings Account Money Market Account
5/02/08 4.50% APY 4.75% APY (first reported)
5/24/08 4.05% APY 4.05% APY
6/14/08 3.50% APY 3.50% APY
I was afraid these rates would not hold. Readers found many other Waterfield/Affinity related banking centers on the web which includes the well-known UFB Direct. I reported the yields offered by all of these banking centers in this May 21st post. There were none that had yields of 4% or higher. Most had yields around 3%. So it seemed unlikely that the AARP Financial Savings Center would be any different over the long term.
Alliant Credit Union's savings account is now clearly on top with a 4% APY. This should at least hold through June.(see my Alliant review).
For more details about AARP Financial Savings Center and the the savings and money market accounts, please refer to the following past posts:
- Research into AARP Financial Savings Center
- Update on AARP Financial Savings Center
- Overview of the AARP Financial Savings Center
Thanks to all the readers for noting this change.
Shame on AARP Savings for pulling all of us in with such a high rate only to lower it so much so soon.
I call on everyone to pull out their money just as fast as they put it in.
Show these online banks that they can't pull this kind of bullsh*t.
I will be writing a check to transfer my money today. I will leave the $200 minimum in my Jumbo MMA for the 180 days to avoid the penalty.
My Jumbo still shows 4.05% but I spoke to a CSR today and was told that yield would probably drop Monday.
I too, plan to withdraw all but the $200, but will wait until the interest for this period shows up on the account.
It was fun while it lasted and I will have drawn about $2K in interest from the full time AARP first mentioned the great rate.
Can someone explain the "daily balance method"?
"Money Market Savings accounts are variable rate products and rates may change daily without prior notification. The Huntington National Bank uses the daily balance method of computing interest, which applies a periodic rate to the full collected amount of principal in the account each day."
If your funds are for a longer outlook look towards CDs or other investment opportunities
Thank You for contacting AARP Financial Savings Center.
The AARP Banking Center continues to be committed to delivering high quality and valued products to its customers. While we have been able to maintain consistent rates since July 2007, we had to respond to the market and economy and make an adjustment. We do have a finance committee that meets and uses many different criteria’s to determine the rates and it is proprietary information. This is not an introductory or promotional rate. As stated in all of our disclosures this is a variable rate product and the rate could change in the future. You can check the website or your account online at anytime for the current rate, you can also call our Customer Care Center at 866-421-5806. Additionally, your rate is published on your monthly statement. We do not send formal rate change notifications on variable rate products.
Respectfully,
H. John`ene Brown
Quite a bunch of bureaucratic mumbo-jumbo there.